Rs 5k-cr subsidy for rooftop solar power

To meet its target of scaling up solar power capacity addition, the Cabinet Committee of Economic Affairs (CCEA) has increased the financial assistance for grid-connected rooftop and small solar power plants programme from Rs 600 crore to Rs 5,000 crore.

This amount is used for implementation of grid-connected rooftop systems over a period of five years up to 2019-20 under the National Solar Mission (NSM).

An official statement said this would support installation of 4,200 megawatt (Mw) solar rooftop systems in the country in the next five years. This capacity will come up through the residential, government, social and institutional sectors such as hospitals and educational institutions.

The capital subsidy of 30 per cent will be provided for general category states and Union Territories, and 70 per cent for special category states such as the North-East, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Lakshadweep, and Andaman & Nicobar Islands.

There will be no subsidy for commercial and industrial establishments in the private sector since they are eligible for other benefits such as accelerated depreciation, customs duty concessions, excise duty exemptions and tax holiday.

The government has revised the target of NSM by five-fold to 100,000 Mw by 2022. Of that, 40,000 Mw is to come from grid-connected solar rooftop systems.